Newmac Resources Inc. (TSX-V: NER; Frankfurt: N3M) is pleased to announce that drilling has commenced on the 100% owned Crazy Fox Molybdenum property. A minimum of 3,000 m will be drilled in this first phase targeting the newly discovered western part of the property where a recent high grade sample of 7.29% molybdenum has been discovered (see description below), and the November-December trenching program exposed large widths of mineralization.
The company is very impressed with the progress made on the property in the last 4 months, and is excited about the current drill program. The company’s President David Hjerpe said, “It’s amazing how fast this project is developing. The company has now discovered mineralized showings through grab samples, trenches, and historic data covering a distance of 1,000 m, this size is also confirmed by Newmac’s soil sampling program that demonstrates the potential of the project in both size and grade.”
Fox Molybdenum Property
The Crazy Fox molybdenum project is located 20 kilometres north-northwest of the village of Little Fort, BC. Molybdenum has been explored for on the Crazy Fox property since 1938 but with recent renewed effort following the discovery of high-grade boulders in 2005 found as new logging roads were being constructed. One of these boulders, (A quartz-feldspar porphyritic rock with disseminated MoS²,) which are typically angular, and up to 50 kilograms in weight, was recently assayed and returned an analysis of 7.29% molybdenum and 1.583 grams per tonne rhenium. The current price for molybdenum, in the range of $20 to $30 US dollars per pound and for rhenium recently quoted at $US 1,050 per ounce, make the source of these boulders a compelling target.
The Crazy Fox property is located 70 kilometers south-southeast of the Boss Mountain molybdenum mine. Boss Mountain, owned by Noranda Mines was in production from 1965 to 1983 during which time it processed 6,570,000 tonnes of ore with an average grade of 0.22% molybdenum, mined by both surface and underground methods. Both the Crazy Fox property and the Boss Mountain properties are located within the Triassic-Jurassic aged Quesnel Terrane and each property is proximal to a Cretaceous age (approx.102 my) intrusive. At Boss Mountain, mineralization occurs in quartz stock work veins, larger veins and in higher-grade breccia bodies related to the Cretaceous intrusive. Molybdenum production in the western world’s economies is currently dominated by US based Phelps Dodge Corporation who operates the world’s largest primary molybdenum mine at Henderson Colorado. Henderson, which began production in 1976, produced 160 million tons of ore to 1992 (date of statistic) grading 0.24% Mo (similar to Boss Mountain) and remains in production today. British Columbia has also been a significant producer of molybdenum since 1965 with the Endako Molybdenum Mine having produced 422 million pounds of molybdenum since then. Endako had published reserves at the end of 2004 of 80.7 million tonnes grading 0.063% Mo with mining completed using open pit methods.
At the Crazy Fox property, molybdenite (MoS2), (often simply referred to as ‘moly’) has been recognized in quartz stock work veins, larger veins, in pegmatite (very coarse grained rocks) and as disseminated mineralization (in float). The moly is variably associated with tungsten minerals and fluorite.
Recent Exploration by Newmac to the east and southeast of the focus of previous exploration efforts on the property in the 1960’s to early 80’s has revealed a somewhat clustered group of newly discovered molybdenite occurrences which include localized high grade mineralization in pegmatitic sections. The pegmatitic rocks are apparently related, proximally and genetically, to dikes of fine grained, quartz- feldspar porphyry.
Four selected grab samples from local pegmatite or ‘open space filling’ in trenches 4, 5, and 6 are as follows:
A505335 from Trench 4 = 2.810% Mo
D63425 from Trench 5 = 0.761% Mo
D63421 from Trench 6 = 0.449% Mo
D63423 from Trench 6 = 0.278% Mo
The recently completed trenching results (see News Release February 17, 2006) show the persistence of mineralization across local widths in excess of 125m within a local area approximately 200m x 300m in extent and open to extension to the north and west towards areas of previously identified mineralization. The ability of the system to generate much higher grades when the ‘plumbing system’ is in place is illustrated by the higher grade samples associated with pegmatitic textures and open space fillings. The results are comparable to historical results reported from the 1960’s through 1980’s elsewhere on the property.
Taken together, the molybdenite mineralization is now recognized over an area approximately 1,200m wide. Company geologists believe the modes and styles of the moly occurrences and the mineral associations may be indicative of a relatively high level within the mineralizing system.
Technical content of this news release has been reviewed by W.A. Howell P.Geo., a qualified person within the definitions of national instrument 43-101.
ON BEHALF OF THE BOARD
This news release contains forward-looking statements within the meaning of the “safe harbour” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties and other factors that may cause Newmac Resources Inc.’s results to differ materially from expectations. These include risks relating to market fluctuations, property performance and other risks. These forward-looking statements speak only as of the date hereof.
THE TSX VENTURE EXCHANGE DOES NOT TAKE RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
For Further Information Contact David Hjerpe, President at: (604) 461-7211,
email: [email protected], www.newmacresources.com